Boat Finance NZ

Boat Finance in New Zealand

Owning a boat in New Zealand is delightful but also very costly. Boat finance is a type of personal loan that enables you to purchase either a new or used boat. It is usually a secured loan, whereby you use the boat as collateral. Some lenders will accept a different asset of value, such as property or car, as security for the boat finance.

Before you take the actual step of purchasing a boat, it is crucial to understand its costs. Many end up buying boats and reselling them when they know the many expenses attached to it.

Boat Finance


We have put together some of the associated expenses with boat ownership. This will give some indication of what will be the true cost of owning a boat in the long run and how much boat finance ou will need. 

Expenses Associated With Boat Ownership

  • Cost of the boat: It sounds cliché, but it is crucial to understand that boats are costly. Depending on the type of boat you choose, the prices range from $15,000 to $200,000 and some even higher than that.
  • Boat insurance: for such an expensive possession, it is wise to take an insurance facility against unforeseen damages, theft, fires, etc. You are required to pay insurance annually to be safe.
  • Boat deck equipment: Again, this depends on what you intend to use your boat for; some of the equipment you need are safety lifesaving gears, electronics, water toys, accessories, etc.
  • Maintenance cost: boats require regular checks, especially as they get old
  • Operating cost: your usage and type of the boat determine the operation cost; it varies greatly, but it is good to bear it in mind.
  • Boat storage: you cannot park your boat at home like a car. The area of storage and the length of your boat will determine the mooring fee it will attract.


Now that you know the cost implications of boat ownership, if you are still interested in pursuing this quest, then read on.

How to Get Boat Finance in New Zealand

  • Assess your financials: First and foremost, your financial ability is a significant determinant to get any financing. You must be able to repay the loan. Before you even think of approaching any lender, make sure that you qualify to get the facility in the first place. You can achieve this by calculating your net monthly income and subtracting all the monthly expenses. The amount remaining will determine the amount you can access for boat finance.
  • Check your credit rating: Lenders base their trust majorly on the clients’ credit rating. You can check your rating online on a website such as Credit Simple. Remember, the higher the rating, the more creditworthy you are, meaning the higher your chances of getting your boat finance.
  • Do your research: Take your time to know what is in the market. Getting the right facility takes time, in-depth analysis, and a lot of negotiation. Most times, making rush decisions end up messing your boat ownership journey. You need to think about the whole process to spare yourself the agony and frustration of being stuck with a bad loan.
  • Choose your lender carefully: There are many lenders in New Zealand, but not all of them are the right fit for you. There are many things to consider when choosing a lending institution. Some of these may include; flexible loan terms, competitive interest rates, establishment and account maintenance fees, willingness to answer questions, maximum loan limit, etc.
  • Make an application: approach the lender of your choice and fill in all the application details. You will need to provide your valid supporting documents to attach to your application. After this, you will get an offer to accept and finally sign the unconditional contract. 

Boat Finance tip

Make extra payments: It is always advisable to reduce your debts whenever you get some extra money. It will reduce the facility’s overall charge and reduce the loan duration, and in some cases, lower your monthly payments. Please note, some lenders penalize the debtor for making early repayment; before you take up the loan, beware of such details in the fine print.

Get the right lender who will give you the proper lending structure for your needs. Do not be in a rush; remember, this will be a long-term relationship, and you want to walk the journey with the right partner. Taking Boat finance is a big commitment; ensure that you have all your figures right to get a loan that comfortably works within your budget.

Scroll to Top